British businesses need support not a further tax burden to deliver economic growth
Businesses across the country will be central to delivering economic growth. That is why the measures announced in the Chancellor’s Budget in October last year raised a few eyebrows.
While Rachel Reeves made the point that tough decisions had to be made given the mess that the new Government had inherited, there was a sense amongst the captains of commerce that the burden for fixing the nation’s problems was being put on the shoulders of British businesses.
With the rate of employer national insurance contributions (NICs) going up by 1.2 percentage points from 13.8 per cent to 15 per cent yesterday, many small businesses have already sounded the alarm that prices could increase and the number of staff working hours fall.
The payments will also start when an employee earns £5,000, down from the previous level of £9,100.
The Chancellor will be acutely aware of the significance of added pressure on businesses. Not only from representing the people of Leeds West and Pudsey but also from her time as an economist at the Bank of England.
And it is clear that businesses cannot continue to shoulder the burden of costs while also delivering growth.
If the Government is going to be successful in delivering its promise of economic growth, businesses need an environment that allows them to invest.
That is why it needs to start changing the narrative and start delivering incentives for businesses as well.
Sir Keir Starmer has an opportunity to show that his Government is on the side of British firms by supporting those impacted by Donald Trump’s tariffs. The PM has said the Government is “ready to use industrial policy” to help shelter businesses from the fallout, as firms across the globe are grapple with how to deal with the new taxes.